Third-quarter GDP growth revised higher

Economic growth is better than thought, figures show

WASHINGTON — The U.S. economy grew more quickly than previously stated in the July-to-September quarter, thanks to stronger trade, faster health care spending, and increased local government construction, the Commerce Department estimated Thursday.

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By Steve Goldstein

MailTribune.com

By Steve Goldstein

Posted Dec. 21, 2012 at 2:00 AM

By Steve Goldstein
Posted Dec. 21, 2012 at 2:00 AM

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WASHINGTON — The U.S. economy grew more quickly than previously stated in the July-to-September quarter, thanks to stronger trade, faster health care spending, and increased local government construction, the Commerce Department estimated Thursday.

The Commerce Department said third-quarter gross domestic product grew at a seasonally adjusted annual rate of 3.1 percent in the third quarter, which is the fastest rate of growth since the 4.1 percent pickup in the final quarter of 2011.

The GDP numbers were well ahead of the government's initial estimate of 2 percent growth or even its most recent tally of 2.7 percent. Economists polled by MarketWatch had anticipated a 2.9 percent reading in the third and final estimate.

The considerable adjustment came because the final revision relies less on projections and more on concrete data from the Bureau of Economic Analysis, the Census Bureau, the Bureau of Labor Statistics, the Treasury Department and the Agriculture Department.

Personal consumption is now pegged to have grown at a 1.6 percent rate, up from a previously estimated 1.4 percent rate and faster than the 1.5 percent advance in the second quarter.

The change from the previous estimate was because of an upward revision to health care services, and the growth during the quarter came from durable-goods spending on vehicles.

Other differences between the third-quarter reports: Trade was a bigger help, with exports higher because of revised export prices as well as more goods, and imports lower because of downward revisions to travel and to royalties and license fees.